In early December 2025, Bitcoin climbed back above $91,000 as expectations for a Federal Reserve rate cut soared to 70%, reigniting bullish sentiment across the crypto sector. This upward move came after Bitcoin bounced from "extremely oversold" conditions on the relative strength index (RSI), a tool that
has often marked short-term recoveries in the past
. Over $206 million in liquidations over the weekend and limited market depth led traders to point to signs of sellers losing momentum, helping
Bitcoin
regain important support zones. At the same time, alternative cryptocurrencies such as
XRP
and
Zcash
(ZEC)
jumped by 7.7% and 17%
respectively, as the overall crypto market value rose 3.29% to $2.95 trillion.
This price movement coincided with broader economic changes, as
Federal Reserve members such as John Williams suggested
a possible rate cut in December to counter slowing inflation and a softening job market. This more accommodative stance reduced borrowing costs and boosted liquidity for riskier assets, with
Bitcoin ETFs recording $238 million
in net inflows on Friday, reversing a multi-week trend of outflows.
Market commentators like Raoul Pal and Ali Martinez pointed out
bullish technical patterns, including Bitcoin's test of its 100-week moving average and a Tom DeMark buy signal for XRP, hinting at potential further upside.
Institutional investment flows were also crucial.
Solana
spot ETFs attracted $55 million in new funds for the 16th day in a row, while
Ethereum
ETFs saw $37 million withdrawn, highlighting a shift toward smaller-cap tokens
as shown by market statistics
. BlackRock’s
iShares Bitcoin ETF
(IBIT) received $60.61 million in inflows after experiencing its largest redemptions since inception, and Grayscale’s Dogecoin ETF (BWOW) along with the XRP ETF (GXRP) reflected increasing institutional interest in altcoins
based on recent analyses
.
Yet, not all market developments were positive.
The suggested removal of crypto treasury firms
such as Strategy from MSCI indexes in January 2026 sparked criticism from Bitcoin supporters, with some urging a boycott of JP Morgan and legal action against the bank.
Strategy’s founder Michael Saylor claimed
that this change would force companies to either cut back on crypto assets or lose passive investment, which could unsettle prices.
Sentiment among retail investors was divided. The Crypto Fear and Greed Index dropped to 11, indicating high levels of fear, while
$605 million in leveraged positions were liquidated
underscoring the market’s vulnerability. Nevertheless,
large investor activity and ETF inflows
pointed to underlying demand, with Bitcoin trading near $88,000 and Ethereum exceeding $2,900.
Looking forward, experts remain cautiously upbeat. With the Fed’s December meeting on the horizon and spot ETFs broadening the range of crypto investment products, the market is approaching a pivotal moment. Although resistance around $90,000 and year-end profit-taking may limit gains in the short term,
supportive macro trends and growing institutional involvement
indicate that the longer-term bullish outlook is still in place.
